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To: Dansong

“a distribution which MAY be tax exempt based on hardship”

No, it MAY be PENALTY-exempt. In other words, if it’s a qualifying hardship, you won’t have to pay the 10% early withdrawal penalty. You’d still have to pay income taxes.

The IRS will get their money.


19 posted on 12/29/2010 8:54:05 AM PST by Choose Ye This Day ("As government expands, liberty contracts." -- Ronald Reagan)
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To: Choose Ye This Day

You are correct; thanks.


25 posted on 12/29/2010 9:16:10 AM PST by Dansong
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